C1Part 1Special Resolution Regime
Introduction
I11Overview
1
The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties.
2
The special resolution regime consists of—
a
the three stabilisation options,
b
the bank insolvency procedure (provided by Part 2), and
c
the bank administration procedure (provided by Part 3).
3
The three “stabilisation options” are—
a
transfer to a private sector purchaser (section 11),
b
transfer to a bridge bank (section 12), and
c
transfer to temporary public ownership (section 13).
4
Each of the three stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—
a
the share transfer powers (sections 15, 16, 26 to 31 and 85), and
b
the property transfer powers (sections 33 and 42 to 46).
5
Each of the following has a role in the operation of the special resolution regime—
a
the Bank of England,
b
the Treasury, and
c
the Financial Services Authority.
6
The Table describes the provisions of this Part.
Sections | Topic |
---|---|
Sections 1 to 3 | Introduction |
Sections 4 to 6 | Objectives and code |
Sections 7 to 10 | Exercise of powers: general |
Sections 11 to 13 | The stabilisation options |
Sections 14 to 32 | Transfer of securities |
Sections 33 to F148A | Transfer of property |
Sections 49 to 62 | Compensation |
Sections 63 to 75 | Incidental functions |
Sections 76 to 81 | Treasury |
Sections 82 and 83 | Holding companies |
Sections 84 to 89 | Building societies, &c. |
Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2